Logistic & supply chain management

What is logistic management…?

The objective is to plan and coordinate all the activities necessary to achieve desired level of delivered service and quality at lowest possible cost.

The scope of logistics include the entire of activities starting from the procurement and management of raw materials through to delivery of final product to the customer

Introduction

Competitive advantage

Customers seeking benefits at acceptable cost

Company AAsset utilization

Cost Differential Company BAsset utilization

Source of Competitive Advantage

* Competitive advantage is the ability of an organization to differentiate itself in the eyes of the customer, from its competition, and to operate at a lower cost and hence greater profit.

* Competitive advantage helps organizations to achieve commercialsuccess which mainly depends upon two factors – cost advantage and value advantage.

COMMERCIAL SUCCES

Cost advantage Value advantage

Value Chain Activities

Primary Activities• Inbound Logistics• Operations• Outbound Logistics• Marketing & sales• Service

Secondary Activities• Infrastructure• Human Resource management• Technology Development• Procurement

Underlying Philosophy Behind Logistics Concept

-----------------Materials Flow---------------------

Suppliers Procurement Operation Distribution Customers

-------------------Information Flow------------------

Activities Include in logistics

Network design Information Transportation Inventory Warehousing, material handling and

packaging.